The State Bank of India (SBI) has reduced the interest rate on its savings account for balances below ₹1 lakh to a historic low of just 3.25%. Also, remember that savings account interest up to ₹10,000 is tax free under Section 80 TTA of the Income Tax Act, 1961. Which bank to shift toYou have several options including public sector banks and private sector banks. Finally, they should note the fact that there is no lock-in of a savings bank rate and the new bank may lower its savings account rate at any time. Also cuts in savings account interest tend to be gradual," said Iyer.

Source: Mint October 09, 2019 11:14 UTC